Describe the Assumptions of the Resource-Based View of the Organisation

question 46

Essay

Describe the assumptions of the resource-based view of the organisation.What is meant by the terms 'rare','inimitable','non-substitutable' and 'valuable'.

---

Definitions:

Production Possibilities Frontier

A curve depicting all maximum output possibilities for two goods, given a set of inputs consisting of resources and other factors.

Increasing Opportunity Cost

A principle that states as more resources are dedicated to an activity, the cost of producing an additional unit increases.

Bowed Inward

Describes a concave shape of an economic curve, such as the production possibility frontier, indicating increasing opportunity costs.

Bowed Out

A term used to describe a situation where a party withdraws from an agreement, competition, or situation.